Paytm to Partner 4 Banks for UPI: @paytm handle to be retained
After obtaining the license to operate as a third-party app provider, One97 Communications is anticipated to collaborate with SBI, HDFC Bank, Axis Bank, and Yes Bank to settle UPI transactions.
According to banking insiders, the transition would happen gradually and smoothly because the @paytm handle will be kept. These handles will, however, point to one of the four banks for settlement rather than PPBL.
According to sources, PPBL’s system would also keep working after March 15 since clients would still be able to access their accounts and make withdrawals, and the bank would still need to keep offering UPI services to make this possible.
“Unlike in the case of Yes Bank in March 2020, there is no pressure as PPBL has to remain operational because of RBI directions,” stated a top banker. He further stated that One97 Communications would need to supply a new handle whenever it is permitted to enroll clients with a new TPAP license and that the transfer of settlement to the four banks will take place gradually.
Merchants who currently hold accounts with PPBL are being transferred one by one to other banks. The company is going to create accounts with additional banks shortly after opening a nodal account with Axis Bank.
